What Malaysian Employers Must Know About Workforce Trends in 2025
If you’re leading a team, managing HR, or making hiring decisions in Malaysia, it’s no longer enough to just fill roles and hope for the best. The world of work is changing—fast—and your ability to adapt will define whether your organization thrives or falls behind.
ManpowerGroup’s latest2025 Global Workforce Trends report outlines four key forces shaping the global workforce: the Expansive Workforce, New Ways of Working, Digital Transformation, and Accelerating Global Change. But what does that mean for employers right here in Malaysia? Let’s dive into the trends, and more importantly, what you can do about them.
1. Your Workforce Is More Diverse—and More Demanding
Malaysia’s labor market is in flux. Gen Z is entering in droves, millennials are feeling the squeeze in middle management, and women continue to face pay gaps. According to the report, 47% of Gen Z globally say they might leave their current jobs in the next six months. Millennial managers are also reporting burnout, with 53% experiencing daily stress.
In Malaysia, Gen Z and millennials could make up over 70% of the workforce. Globally, they’re expecting more from their employers in terms of flexibility, well-being, and purpose.
What you can do:
Develop clear career paths and mentorship programs.
Conduct regular well-being check-ins.
Make employee listening a formal part of your culture.
2. Flexibility is Non-Negotiable, but Not One-Size-Fits-All
In Malaysia, the gig economy is growing—more than 17% of the country’s workforce are working in the gig economy, a rise of 25% from 2021 to 2023 (from 2.4M to 3.0M). But here’s the catch, our research globally shows: 72% of Gen Z workers till value in-person interactions at work, and 59% feel the same even or virtual socialization.
What you can do:
Offer a hybrid workplace strategy with purpose-built collaboration spaces.
Redesign your office to facilitate meaningful in-person engagement.
Use workforce planning to decide which roles are fit for gig-style work.
3. You Need a Digital Workforce Strategy Yesterday
Digital transformation is not a buzzword—it’s a survival strategy. Our report finds that 76% of IT employers globally struggle to find skilled talent. Yet, only 27% of workers say they have a career plan.
In Malaysia, ICT and e-commerce contributed 23.5% to Malaysia’s economy with a value of RM427.7 billion in 2023, but employers still face huge digital skills gaps.
What you can do:
Invest in talent intelligence tools to identify skills adjacencies.
Offer bite-sized learning opportunities that build career durability.
Partner with upskilling providers to future-proof your workforce.
4. Geopolitical Risks and Sustainability Are No Longer Future Concerns
A staggering 38% of CEOs globally have cancelled business plans due to political risk. Closer to home, Malaysia’s exposure to regional supply chain disruptions and environmental risks means business continuity planning must include workforce considerations.
At the same time, green jobs are rising. The report forecasts 30 million green jobs globally by 2030. Malaysia has already committed to green transformation as part of the MADANI Economy framework and energy transition roadmap, and thousands of job openings.
What you can do:
Begin planning workforce transitions into green roles—upskill internally where possible.
Leverage government programs that support sustainability-linked employment.
Add green skill components into existing training programs.
5. You Have the Power—But You Still Need to Listen
Interestingly, 65% of employers globally believe the powerbalance has tipped in their favor. While that may be true short-term, ignoring employee sentiment is risky.
Only 48% of employees feel engaged at work, while 83% of leaders think their teams are engaged. That disconnect can lead to attrition, poor productivity, and brand reputation damage.
What you can do:
Introduce employee experience platforms to track sentiment in real-time.
Be transparent with internal communications and HR policies.
Regularly update your EVP (Employee Value Proposition) to stay relevant.
How can a recruitment agency help you?
In today’s fast-evolving world of work, navigating workforce challenges requires more than just hiring talent, it demands strategic partnership. A recruitment agency like Manpower Malaysia can help employers stay ahead of the curve by providing workforce solutions that align with the latest trends, from building diverse, multi-generational teams to enabling flexible work models and closing critical skills gaps.
Whether you need support in workforce planning, talent mapping, contract staffing, or upskilling programs, we help organizations design future-ready talent strategies. With deep local market knowledge and access to global workforce insights, we can help you find the right people, foster employee engagement, and build sustainable teams that thrive in a changing world like including preparing for the green economy, embracing digital transformation, and creating meaningful employee experiences.
Ready to shape the future of work with confidence? Let’s explore how we can help you achieve your workforce goals.
Final Thoughts
The future of work in Malaysia isn’t a question of if change will come, as it’s already here. There's a lot to navigate, from workforce composition to workspace design and digital skills gaps, but here’s the good news: you don’t have to do it alone.
At ManpowerGroup Malaysia, we help businesses like yours to decode the trends, understand your talent gaps, and build future-ready teams. Whether you’re exploring contract staffing, talent intelligence, or upskilling strategies—we’ve got your back.
Ready to adapt with confidence? Let’s talk. Email us at [email protected]